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1. INTRODUCTION
The cost of accessing a bank is the biggest challenge facing
most people in emerging economies. Mobile payment systems
as described in [6], [7], [11] and [12] are breaking down
numerous barriers caused by distance and access thus
improving banking activities in these countries. M-PESA is
processing more money transactions in Kenya, than what
Western Union transacts globally hence providing mobile
banking services to Kenyas 70 percent adult population
according to [4], [5] and [9].
The numerous financial innovations mushrooming in the
developing countries has brought about a knowledge
economy. This emphasizes the role of knowledge in
implementing technology. More than in the past, there is
emergence of technological start-ups that are tailored around
finding solutions to everyday problems using technology. The
growing ubiquity of mobile phones experienced in developing
countries has revolutionized the financial infrastructure and
led to these nations to leapfrog the developed countries.
Data was collected by administering a questionnaire on 482
respondents across both rural and urban settings. Statistical
Package for the Social Sciences (SPSS) was used to
statistically analyze data.
The author explored various parameters that promote
intentions to use M-PESA. The unified theory of acceptance
and use of technology (UTAUT) model by [15] was
integrated with the innovation diffusion theory (IDT) [3]. The
two theories were used to access customer acceptance of MPESAs novel innovation and ease of use. Based on these
facts, the study aims to focus on two objectives:
2. M-PESA IN A NUTSHELL
2.1 How does it work?
M-PESA is a phone based money-transfer scheme as
explained in [2]. It requires a subscriber to sign-up. The
subscriber is then able to pay cash money into the system by
visiting any of Safaricoms 90,000 agents (usually a small
business premise). The agent then credits the money to the
subscribers M-PESA account (e-float) as mentioned in [8].
The subscriber may withdraw money by visiting any
authorized agent, who determines if the subscriber has
sufficient funds before debiting subscribers account and
giving out cash. The subscriber can also transfer money to
others (P2P) using the phones menu. It is therefore a safer
method of transferring cash, rather than using the traditional
physical method which is more risky [14]. One factor that has
propelled M-PESAs prosperity is the Kenyan culture of
giving. Most of the working populations in urban areas
support their families who live in rural villages financially.
Figure 1 below illustrates M-PESA transactions (deposits,
withdrawals and P2P transfers) for the last 6 years as
illustrated in [10].
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3. METHODOLOGY
This research investigates questionnaire responses from 482
M-PESA customers in Kenya using the random sampling
method. Out of these, 36 questionnaires were discarded. The
respondents comprise 285 males and 161 females. 55 percent
of the respondents reside in urban neighbourhoods while 45
percent live in the rural areas. The process was carried out in a
span of six months cumulatively. The sample was thereafter
statistically analyzed. To ensure more grounded findings, the
author has also consulted literature and statistics from various
authoritative sources
H1
II.
III.
IV.
4. RESULTS
H2
EE
Behavioura
l Intention
Use
Behaviour
H3
S1
H4
FC
Age
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Gender
Experience
Voluntarine
ss to use
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Dependent
variable
Behavioural
Intention(BI)
Behavioural
Intention(BI)
Behavioural
Intention(BI)
Behavioural
Intention(BI)
Pa
th
Direct
Factor
Performance
Expectancy
(PE)
Effort
Expectancy
(EE)
Social
Influence
(SI)
Facilitating
Conditions
(FC)
.138
[2]
Statistical
result
Supported
[4]
.102
***
Supported
.318
***
Supported
[5]
.077
**
Supported
[6]
[7]
5. CONCLUSION
It is evident that several salient factors are responsible for the
success of the mobile money innovation, M-PESA. Customers
have found the mobile payment interface user friendly,
responsive, interactive, simple, consistent and easy to use.
Safaricom on the other hand has made mobile payment
services cost effective, accessible round the clock and
considerably secure. The transactional speeds are very
impressive and the service is easily available by ensuring
there is a wide agent network across the country. Moreover,
M-PESA has already expanded its network across several
countries with unequalled success. It is also cashing in on
international remittances (money transfer) by partnering with
moneygram proving that it is still expanding new lines of
conducting business.
[8]
[9]
[10]
[11]
[12]
6. ACKNOWLEDGMENTS
The author would like to especially thank her PhD
supervisors, Prof. Gerti Kappel and Prof. Christian Huemer
for their support. This research was made possible by funding
from the City of Vienna through the Vienna University of
Technology. A special appreciation to Dr. Andrew Kahonge
and the University of Nairobi, School of Computing and
Informatics, University of Nairobi for their resourcefulness
and guidance. Finally, the author would like to gratefully
acknowledge all the M-PESA agents who participated in this
research for their invaluable contribution.
[13]
[14]
[15]
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The electronic Journal of Information Systems in
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E. Rogers, Diffusion of Innovations, New York: Free
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FSD Kenya. FinAccess National Survey 2013: Profiling
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[Online].
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7. REFERENCES
[1] B. Ngugi, M. Pelowski and J. G. Ogembo, MPesa: A Case Study of the Critical Early Adopters
Role in the Rapid Adoption of Mobile Money
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